by Angela Guess
A recent article discusses the evolving role of the CIO. It states, “IT executives in the leading firms are trusted stewards of 4% to 10% of the firm’s gross revenue–funds best used to drive long-term shareholder returns. As technology plays an increasingly important part in successful execution of business strategy, the role of the chief information officer (CIO) as a C-level executive will evolve as well.”
The article continues, “As we observe the evolution of the CIO and the broader technology function, we see their focus shifting from the day-to-day oversight of operations and delivery of solutions to the delivery of business outcomes. For some firms, this means instituting new titles and responsibilities that raise the level of attention directed to ‘the five I’s’: information, infrastructure, innovation, investment, and integration.”
It adds, “Many leading financial institutions have introduced a new C-level role to provide ultimate oversight of the firm’s technology–the head of technology and operations. While the scope of authority given to such officers varies widely, institutions have recognized that consolidating responsibility for the firm’s operations, technology, and shared services under a single individual creates greater opportunities for optimizing investments, efficiencies, and economies of scale. Unlike a traditional CIO, the head of technology and operations is responsible for, among other things, finding and eliminating inefficiencies in front- to back-office processes and helping drive sustainable, long-term improvements to profits.”
